idea but should he try to stop it. plus new york city's murder rate hit a 50 year low but the policy is still under fire. to stop and frisk be soon a thing of the past? and the return of the hollywood black list. campaign against zero dark 30. >> paul: welcome, i'm paul gigot. with days to go president obama turned up the heat on republicans this week saying they would be to blame if across the board spending cuts take affect march 1st. appearing on police officers and firefighters and other first responders, he claimed the consequences of such cuts would be dire. >> people will lose their jobs. it will jeopardize our military readiness. it will eviscerate investments and thousands will be laid off. tens of thousands of parents will have to scramble to find child care for their kids. >> paul: but in an op-ed john boehner shot back saying the sequester was the white house's idea in the first place and product of his president obama's failed leadership. joining us is dan henninger. jason riley and washington columnist kim strausel. let's start with the merits and the claims of catastro

. >> if republicans give in on a tax increase again, they are toast in 2014. when we come back, new york city saw murders plummet in 2012 to their lowest rate in 50 years, but the policy many say is responsible for that historic success is coming under attack. should stop and frisk be a thing of the past? . my bad. tell me you have good insurance. yup, i've got... [ voice of dennis ] ...allstate. really? i was afraid you'd have some cut-rate policy. nope, i've got... [ voice of dennis ] the allstate value plan. it's their most affordable car insurance -- and you still get an allstate agent. i too have... [ voice of dennis ] allstate. [ normal voice ] same agent and everything. it's like we're connected. no we're not. yeah, we are. no, we're not. ♪ ask an allstate agent about the value plan. are you in good hands? i'm here to pick up some cacti. it should be under stephens. the verizon share everything plan for small business. get a shareable pool of data... got enough joshua trees? ... on up to 25 devices. so you can spend less time... yea, the golden barrels... managing wireless costs and tech

in the financial crisis. >> that is right. one of the banks of the center of the mortgage melt down, in 2007, citi was one of the first to have difficulties when they been managing these off balance sheet vehicles to invest in mortgages. those started to go south. they ended up at the end of that year having to take them in-house again and stand behind them which put a lot of financial pressure on the firm. i think this is going to be a test, nomination whether they are still outraged about the bailout. >> paul: they had a $45 billion taxpayer injection and guarantee of $300 billion in bad loans. there is no question in mind, citibank would have failed without federal intervention? >> i think it would. the question in my mind is whether they should have let it fail. >>> sheila bair thought so but she was opposed by other people in the administration. let's get to jack lew? >> maybe the most interesting job in early 2008 he takes the helm of alternative is investments that ran hedge funds and exotic balance vehicles. it was basically a unit if it wasn't the inspiration for the volcker rule that wan

took home from citi in early 2005. as well as his investment in a venture capital fund registered in the cayman islands. >> why is the investment in the cayman islands? >> senator, i actually don't know why it was organized. i was not involved in setting up the fund. >> did you pay taxes on that investment? >> i reported all income related to the investment on my tax forms, i made all of my taxes. >> explain why it would be morally acceptable to take close to a million dollars out of a company that was functionally insolvent and about to receive a billion dollars of taxpayers' support. >> senator, in 2008 i was an employee in the private sector, compensated in a manner consistent with other people who did the kind of work that i did in the industry. >> paul: we're back with dan henninger and james freeman and wall street editorial board member. what did we learn about his tenure at citi? >> almost nothing. it's amazing, he didn't have an opinion 0 that, chief operating officer and running before and during the crisis, overseeing a lot of important stuff. the financing of the divis

see is blanketed in what looks like about a foot of snow out there, just outside new york city. it looks like the walk up the stairs will be difficult when i get back and our thanks to karina though, the last picture is our favorite take a look, karina with sassy our dog who is absolutely adorable. thanks, karina. and that's going to do it for me and stay with me for coverage in the blizzard in new england and the manhunt taking place in big bear, california for an ex-cop turned suspected killer. bulls and bears is next. i'm uma pemmaraju fox news where we report and you decide. make it a great day everybody. >> . >> as the northeast is getting plowed out, nearly 7 million americans bracing to be pushed out from their health insurance. new government numbers showing that's how many people could lose their employer-based plans because of the president's health care law. so what happens to this. >> if you like your health care plan you'll be able to keep your health care plan period. >> brenda: all this as the price tag keeps growing. someone here says the number of surprises wil

. baltimore might be the title town, but the city's tax and spending problems could bring it down. now the cavuto team say some in washington are taking a page out of baltimore's play book that could sack us all. that's at the bottom of the hour, but up here, first, those automatic spending cuts bearing down. now, the scare tactics from both sides are ramping up. but someone here says the real scare is if these automatic cuts don't happen. we explain. you decide if you should hide. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an arc

announcer ] one pill each morning. 24 hours. zero hearurn. test their hair? well a kansas city high school, is there any other kind, is planning to collect the greasy locks from students to conduct mandatory drug tests. starting next year rock wood high will take 60 strands from each student and any drug add adolescents will have 90 days to get drug free. if we do encounter a student who made bad decisions with drugs or alcohol we will be able to intervene and get the parents involved and get him help and help him get back on the path of better decision making hell -- >> rut worst prompter reader. -- you are the worst prompter reader. >> that is supposed to be said in his ear by a producer. how dare you vocalize this? >> carry on. >> we will start this show over with somebody else in that chair. >> me in a dress, please. >> i believe we have tape of the principal getting high on life. >> wow. >> my goodness. >> that could have been you, lori. >> you were saying in the green room that the school is punishing kids for being wrong. you said the more kids that are high the better it is. that's

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